RVNL shares rise on multiple orders from Chennai Metro

Shares of Rail Vikas Nigam Ltd (RVNL) rose 4% to Rs 128 after the firm received three letters of acceptance (LoAs) from Chennai Metro Rail for various underground stations for second phase of the project. RVNL opened higher at Rs 126.80 against the previous close of Rs 122.55 on BSE. Later, the stock rose 4% to Rs 127.75 on BSE. Total 8.36 lakh shares of the firm changed hands amounting to a turnover of Rs 10.48 crore. Market cap of RVNL rose to Rs 25,875.10 crore on BSE. The stock hit a 52-week high of Rs 144.50 on May 8, 2023 and a 52-week low of Rs 29 on July 21, 2022.

In terms of technicals, the relative strength index (RSI) of RVNL stands at 56, signaling it's trading neither in the overbought nor in the oversold zone. RVNL stock has a one-year beta of 0.7, indicating low volatility during the period. Rail Vikas Nigam stock is trading higher than the 5day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 314% in a year and risen 558% in three years.

RVNL said Chennai Metro has awarded contract for the construction of five underground stations at KMC (Kilpauk), Sterling Road JN, Nungambakkam, Gemini (Anna Flyover), Thousand Lights and Thousand Lights crossover box and works of two underground stations at Royapettah government hospital (Roy Apettah) & Chetpet Metro in Corridor-2 of CMRL Phase-II project. The order value is Rs 1,730.6 crore and is to be executed in 1,725 days.

It has received a second order for the construction of four underground stations at Dr. Radhakrishnan Salai, ThirumaYilai, Mandaneli, and Adyar Junction and two cross passage shafts and one emergency escape shaft and other works at one underground station at Greenways Road. The order value is Rs 1,462 crore and is to be done in 1,725 days.

The third order relates to the construction of three underground stations at Adyar Depot, Indira Nagar, and Taramani Road Junction (Taramani) and wall and works other than the Diaphragm wall of the underground station at Thiruvanmiyur. This order is valued at Rs 865.6 crore and is to be executed in 1,630 days.

RVNL is an executing arm of Indian Railways and works for and on behalf of the ministry for projects assigned to it for execution. It works on a turnkey basis and undertakes the full cycle of project development from conceptualisation to commissioning including stages of design, preparation of estimates, calling and award of contracts, project and contract management.